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London grew out of the City in the 16th and 17th century onto the flat lands towards the west. Before it connected fully with Westminster, Soho et al was the Western end of the city.
Look at what counts as a WC post code: Kings Cross and Bloomsbury, it's hard to place Kings Cross in the 'West' but it is west of the city and hence WC.
Off Topic Question:
You lot are knowledgeable about London, so can you help me with something I have always wondered about.
Why is the West End so named?
I wonder if it is from when London and Westminster were distinct, which would make it the west end of London. But if so, how did it survive to mean theatre land? Or is it more recent?
Anyone?